Copper’s Climb, JJC, DBB ETF

Copper prices jumped 5% on Apr. 13, continuing a four-week rally. The metal—an economic bellwether because it is used for wiring in home appliances, buildings, and telecom networks—has an average price of $2.14 per pound, well below its 2007 high of $3.07. Josephine Jiménez, manager of the Victoria 1522 Fund, which focuses on emerging markets, expects prices to keep rising since production capacity is limited and demand is still robust from China, the world’s biggest copper consumer. Plus, copper is a play on inflation since it’s used for minting coins, says Jiménez—”and there is a serious shortage of coins.” The purest copper play: The iPath DJ AIG Copper Total Return Sub-Index (JJC) exchange-traded note, which holds futures contracts, says Matt Hougan, editor of IndexUniverse.com. (Exchange traded funds—ETFs—typically mimic market indexes; ETNs are more like bonds and have credit risk.) Another option: the PowerShares DB Base Metals (DBB) ETF, with 40% in copper.

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